Development Finance
Structured Finance for Construction Projects​
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Funding is sourced through our network of institutional and private lenders
Development finance is structured capital designed to support the acquisition and construction of new build real estate assets. It is typically deployed across two phases acquisition and build and underwritten against the completed asset value or total project costs
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This form of financing is distinct from traditional mortgage lending. It is designed to align with the delivery timeline and risk profile of the underlying project, not retail credit parameters.
Ideal for:
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Ground up builds, planning approved sites, and construction led projects
What types of Property Development do we cover?
Our development finance is designed for experienced property developers working on a range of build types:
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New build, conversions and refurbishment
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Residential, commercial and mixed-use developments
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High value residential projects
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Student housing,
senior living and co-living
Care homes
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Phased development schemes
Facilities are tranched across day one facilities and construction costs. The facilities are released at the time of acquisition in order to secure the site and the associated upfront costs.
Construction drawdowns are funded in stages throughout the building process, based on certified quantity surveyor (QS) reports.
Loan sizing is typically based on Loan to Cost (LTC) and Loan to GDV (LTGDV) metrics, with gearing of up to 80% LTC, subject to sponsor profile, location, and exit strategy.
Terms range from 12 to 36 months, depending on construction and sales timelines.
Strategic Benefits
No Pre Sale requirements, different from conventional lenders, development finance does not depend on off plan sales to initiate drawdowns. This preserves both pricing power and exit strategy flexibility by eliminating the pressure to discount units in order to meet pre sale quotas.
Capital investment from the outset, a single facility can be used to secure both acquisition and construction funding, enabling developers to transition from site acquisition to groundwork without any capital interruptions.
Efficiency in equity facilities is frequently designed to eliminate the necessity for dilution or profit sharing arrangements by reducing or replacing external equity. This approach can lead to savings of six to seven figures on larger projects when contrasted with private equity capital.
Structured execution capital is allocated in accordance with project milestones, which are aligned with risk and delivery rather than standardised amortisation schedules.
Rates from
9–11% p.a.
Up to
80% LTC
50-60% LTGDV
Terms
18–36 months
